Kiwi up as risk appetite improves

The pound weakened against the New Zealand dollar yesterday as general risk appetite improved.

• The New Zealand dollar strengthened overnight due to an increase in risk appetite. Goldman Sachs announced much better-than-expected second-quarter earnings, announcing a $3.44bn profit. Additionally in the US, June retail sales and the producer price index were better than anticipated thus resulting in investors’ buying into riskier currencies as optimism grew over the state of the global economy.
  
• Goldman Sachs’ report has increased confidence in the markets however investors are remaining cautious ahead of earnings reports from JP Morgan and Citigroup later this week.
  
• There are no announcements due out in New Zealand today, whilst in the UK there are jobless claims data due at 09.30 BST.